The devastating flooding in central Texas has been a sobering reminder of how quickly disaster can strike. While nothing compares to the loss of life and community displacement, these events also bring major disruptions to small businesses, including dental practices. Offices can flood, equipment can be destroyed, and patient records can become inaccessible overnight.

While this post isn’t financial advice in the traditional sense, being prepared for a natural disaster is essential to protecting the financial health of your practice. Without a plan, your ability to reopen, pay staff, file insurance claims, and maintain patient trust could be severely compromised. And with peak hurricane season approaching, now is the time to revisit your plan or create one if you haven’t already.

According to a survey published in the Annals of Emergency Medicine, more than 65% of healthcare professionals reported having no prior disaster preparedness training. And while data specific to dental practices is scarce, the American Dental Association (ADA) stresses that far too many offices still lack comprehensive emergency plans. As accounting and financial advisors for dental practices, we’ve seen how unprepared practices face prolonged financial recovery while those with a solid plan bounce back faster and stronger.

Here’s what to know and what you can do now to safeguard your practice and its bottom line.

Why Disaster Planning Should Be Part of Your Financial Strategy

• Cash Flow Can Vanish Overnight: A flood or fire can shut your practice down for weeks, even months. Without emergency reserves or business interruption insurance, paying staff, rent, or loan obligations can quickly become impossible.
• Insurance Claims Take Time: Even with great coverage, claims processing doesn’t happen overnight. Having documentation, like inventory records, vendor contracts, and pre-disaster financial reports, on hand can speed things up and ensure full reimbursement.
• Lost Data = Lost Revenue: If your practice management software or EHR system goes down without a backup, you risk losing billing info, treatment plans, and patient history. That’s not just an inconvenience; it’s a revenue and compliance risk.
• Recovery Costs Add Up Quickly: Water remediation, equipment replacement, and temporary relocation costs can easily run into six figures. Planning ahead gives you options beyond emergency loans or dipping into retirement savings.

Practical Steps to Protect Your Practice

• Review and Strengthen Your Emergency Plan: Make sure you have a written plan that covers evacuation procedures, patient communication, data recovery, and roles for each team member. If you don’t have one yet, the ADA has helpful guidance here.
• Secure Your Data and Records: Use encrypted cloud backups for patient records, accounting files, and insurance documents. Keep physical copies of essentials off-site and review your backup strategy regularly.
• Assess and Update Insurance Coverage: Ensure your policy includes business interruption, equipment replacement, and extra expense coverage. Talk to your broker about what’s covered and what’s not.
• Build a Cash Reserve: Set aside 1-3 months of operating expenses in a dedicated account. This cushion can keep you afloat during unexpected closures.
• Document Assets and Inventory: Keep an up-to-date record (with photos) of your equipment and furnishings. Store it securely, off site, with your financials so it’s ready in case of a claim.
• Train Your Team: Emergency plans only work when your staff knows what to do. Hold regular drills, assign responsibilities, and include disaster response in new employee onboarding.

Preparation Builds Resilience

No one wants to think about disasters, especially in a profession built around care and connection. But ignoring the possibility puts your livelihood, your patients, and your financial future at risk. A well-prepared dental practice isn’t just safer, it’s more resilient, more trusted, and better positioned to recover when the unexpected happens.

At Edwards & Associates, we help dental professionals plan not just for growth, but for risk. From reviewing your cash reserves to managing your monthly bookkeeping to guiding you through business transitions, we’re here to support you. We can also connect you with vetted professionals who specialize in everything from emergency preparedness to IT and facilities planning. You don’t have to do it alone.